Monday, July 02, 2018

5 things | buying a house

we are in the process of budgeting for a house and starting to look around and finalizing what kind of house we would like. we've been talking a lot about being intentional with our budget, and what kind of house would be functional for us to have room to grow into, but also stay within our budget. we are looking at moving into a home during the spring of 2019 because we really want to save as much of a down payment as we can. 

we are thankful that our parents are allowing us to stay with them so we can save for a down payment more easily. we weren't able to figure out a budget until I started my job because we needed to know what my income would be. so now that I'm almost a month in and have gotten a paycheck, we are able to calculate what our budget will be! it is exciting talking about it and dreaming of having a house of our own again in just a few months time! (well, less than a year's time at least!)

I wanted to type out and process the five biggest things we've been considering during this time:

o1; needs vs wants
we want a lot of things, but more than anything we want to not be house poor. we realize that whether we buy a house or build a house, we will never be able to get everything we want in a house right now. and we are okay with that. we are sticking with simple so we can stick to our budget and then add things as we can save up for them down the road. so we are recognizing what are needs that we should spend money on, and what are wants that we could save money on not doing right now and possibly do in future years. for example, we want hardwood floors, but carpet is cheaper so we'll have carpet for now. ;)

o2; longevity
we have moved SO MUCH in the past three years with selling our house, moving for grad school, and now having our things in a storage unit. one thing that is important to us in purchasing a home is saving up enough so that we can afford a house we can grow into and stay in for a long time. we want to plan for a very long future in this house so we don't have to move if we don't want to. there are always unexpected things that happen in life, and we will cross that bridge if it happens... but we are planning this house to be our forever home. 

o3; 15 year mortgage
I hate paying interest, so paying as little as we have to is our goal. we saved $13,000 by paying off my undergrad student loans 7 years early and I'm so glad we did! knowing that a 30 year mortgage means that you end up paying almost double the amount of what the house costs, sickens me! I know 15 year mortgages are aggressive and not always an option, but we are going to do our best to make it an option for us. paying the house off in 15 years also means not having a mortgage once our first kid goes to college, which is pretty awesome!

o4; percentage of income
Dave Ramsey suggests your mortgage payment should not be more than 25% of your monthly income. the way we came up with our budget for the house was by figuring out what amount of money the 25% was for us, and then calculating what total amount came out to be that amount or less monthly, with a 15-year fixed rate mortgage. once we calculated all of that out, and factored in property taxes, we had a workable number to use for our budget. 

o5; land
we really want land which means that we will have less in our budget for an actual house because we will be spending some money to ensure having land! our first home was on almost 2 acres and we liked having so much space, plus having that much value if we did eventually sell! where we are wanting to live is where it seems everyone is wanting to move these days. there are SO many neighborhoods popping up all over the place, so having land around these parts (haha) would definitely be a huge value! we are looking at building on land vs buying a house already on at least an acre... and seeing what is most amicable to our budget! for us land isn't an outright need but we are both willing to go more basic with a house to have some land and still stay within budget! plus we both really want land so that we can have some farm animals one day! ;)

what are your "must haves" and "could live withouts" when it comes to a house?

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